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Microcap & Penny Stocks : Financial Shenanigans: Stocks Looking for a Fall -- Ignore unavailable to you. Want to Upgrade?

To: HeyRainier who wrote (86)	6/17/1998 1:31:00 PM
From: Reginald Middleton	Respond to of 108

Thank you for the kind words. Copeland's Valuing Companies, Aswath Damodaran's (many) books on valuation, and the Bennet Stewart book on EVA are all good books. They are all spins on DCF( Discounted Cash Flow) analysis. I have found that the market does not always value cash the most though. It is contingent on the sector, with wide swings between sectors and companies, note the large standard deviations I posted after each sector analysis. It appears that the market is much more complex than many pundits would have us believe:-) Strategic and financial buyers may see value that the general market does not or cannot realize. Financial buyers rely on cash flow to pay down financing vehicles. High growth companies with low capital expenditures and barriers to entry seem to be the most sensitive to gross cash flow. I am definitely not the first one to conduct such an analysis, but those institutions that have done so are very secretive about the results. I am sure you can see why.